Hi, quick and easy question for someone out there. Is CFD illegal in america? is day trading also illegal or are they both the same thing?
CFDs can’t be traded in USA as they don’t permit this financial product.
Day trading on the other hand is a method not a product that can be applied to stocks etc so this is fine.
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About as concise an answer as there is to the question!
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Yes CFDs are illegal stage side. Likely because they pose a threat to the futures and options industry - though the regulators say it’s to protect the public - yeah right.
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Thanks for your reply! I am new to trading and just trying to educate myself on different areas. I see USA residents making a living from stocks, forex, commodities etc. I have saw the PDT rule? with the 25k balance etc. So can a USA resident still trade with leverage? how can they do that? as they cant open a ‘CFD’ account. Thanks again and sorry for the amount of questions lol
I’m not from the US so my knowledge in this area isn’t great but I understand Options are quite a popular alternative to CFDs in the US.
I’ve personally never traded then but hear they have a unique risk reward profile which can make them appealing.
I don’t feel they’re suited if you’re new to trading though.